Cryptocurrency is NOT fungible. If anything about the protocol at all can be altered via a strongman or banana republic voting to take over it's exposed power vacuum it's not fungible.
Money = has objective, static traits
Currency = random arbitrary bullshit some guy makes up and constantly fiddles with like fiat or bitcoin. If it's possible for your money to "hard fork", or randomly morph from one thing to another, it's not fungible, and hence not money.
It doesn't matter if said forks are orchestrated by a banana republic of miners in a voting process. There is no Nash equilibrium in cryptocurrency, only a power vacuum to be filled by a top down hierarchy or strongman. To escape this master and servant hierarchy you have to use real money that cannot be altered or tampered with by third parties.
I think this argument is akin to "a government could nuke its own population to maintain control". Sure, you can rule over a barren wasteland of radioactive decay, but that kind of defeats the purpose of running a government in the first place.
The internet has become such an integral part of life that any draconian control over it would be a step backwards for the society that lives under that regime.
At that point they would probably be confiscating gold as well.